Decentralized Fund Management — Preserving the Ethos of Crypto

Alvara Protocol
4 min readDec 13, 2023

Decentralization stood as a beacon of promise in the early days of the cryptocurrency space. The core ethos of empowering individuals and breaking free from centralized control was the rallying call that attracted many. The crypto landscape is ever evolving and ever maturing. With each passing cycle it would appear that we take more and more continuous steps towards legitimacy in the eyes of the rest of the world. However, this is unquestionably coming at a cost to one of the core principles behind the space as that cherished concept of decentralization is gradually slipping away.

One of the primary reasons behind this shift is the rise of large, centralized entities within the space. For years many have yearned for the institutions to pour into the space. Well, they’re certainly coming, if not already here. The reality is witnessing the emergence of powerful platforms and organizations that wield significant influence over the market. Dominant mining pools to major exchanges and now of course we have the likes of Blackrock, Vanguard and a plethora of other institutions sitting idly by waiting for the green light on their ETF applications. We’ve certainly deviated quite far from the initial course.

Increasing regulatory scrutiny on the crypto industry has prompted some projects and protocols to compromise their decentralized principles in pursuit of compliance. This compromise of original intent is something we’re likely to see more and more often as the regulators circle the space ready to reel it under their control as much as they possibly can. The push for scalability and efficiency has also led to the adoption of more centralized consensus mechanisms, such as Proof of Stake (PoS), which, while efficient, can concentrate influence and decision-making power among a select few.

Given the track record that a lot of the larger institutions waiting to enter the space have, it’s fair to say that the smaller players in crypto, the ‘retail investors’, those that have been here all along, aren’t likely to benefit much from what they have planned. The onus rests on the builders that are here now to fight to ensure the market remains fair for all.

It’s our belief that decentralized fund management stands as a cornerstone in preserving the authentic spirit of decentralization within the space. The management of funds in a decentralized manner has become pivotal for maintaining the core principles that underpin the crypto ideology. It fosters financial inclusivity. It opens up investment opportunities to a global audience, irrespective of geographical location or socio-economic status. Anyone with an internet connection can participate and most importantly, succeed. It promotes transparency and accountability, something that is desperately needed after the events of recent years. Something that reduces the risk of fraud or mismanagement and enhances the overall trustworthiness of the decentralized financial ecosystem. By championing financial sovereignty, inclusivity, and transparency, decentralized fund management becomes a key driver in the ongoing mission to create a financial system that truly belongs to the people.

At its essence, decentralized fund management empowers individuals by removing the need for reliance on traditional financial intermediaries. By leveraging blockchain technology and smart contracts, decentralized finance (DeFi) platforms allow users to control their assets directly, eliminating the need for third-party oversight. This not only aligns with the fundamental ethos of cryptocurrencies but also serves as a bulwark against the concentration of power in the hands of a few.

Furthermore, decentralized fund management fosters financial inclusivity. It opens up investment opportunities to a global audience, irrespective of geographical location or socio-economic status. It’s open to all and enables a more equitable distribution of financial resources and opportunities. Decentralized fund management also promotes transparency and accountability. Smart contracts, deployed on blockchain networks, execute predefined rules automatically, ensuring that fund management processes are transparent and free from human manipulation. This reduces the risk of fraud or mismanagement, enhancing the overall trustworthiness of the decentralized financial ecosystem.

The Alvara Protocol is fighting to do exactly that. Our decentralized platform will utilize the ERC-BTS (Basket Token Standard) to create and manage funds on the blockchain. Alvara have created a comprehensive fund Factory and Marketplace, with a transparent leaderboard showcasing the performance of every BTS created. Removing traditional barriers. Allowing for anyone to participate, the game is open for everyone. A democratic meritocracy in crypto investing, enabling full lifecycle fund management, from creation to ownership transfer, within its seamless framework. It’s on all of us that have been here all along to fight for the core principles of the space. It’s on all of us to ensure that the next generation of market entrants are afforded a fair shot. That’s what we’re striving towards.

About Alvara Protocol

The Alvara Protocol is a decentralized platform that utilizes the ERC-BTS (Basket Token Standard) to create and manage funds on the blockchain. Alvara offers a comprehensive fund Factory and Marketplace, with a transparent leaderboard showcasing the performance of every BTS created. ALVA and veALVA tokens assume crucial roles in driving the ecosystem’s growth and governance with veALVA holders wielding significant influence over the substantial ALVA reward stream. Removing traditional barriers, Alvara fosters a democratic meritocracy in crypto investing, enabling full lifecycle fund management, from creation to ownership transfer, within its seamless framework.

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